Great news! The Metro Phoenix office market ended 2025 with some real positive net absorption. After the worst year on record in 2024, the market suffered. 2025 closed with 816,342 SF of positive net absorption, a swing of nearly 3 million SF in the right direction. It’s clear: more companies are back in the office, just maybe not 5 days per week.
Below is a link to the full Q4 Office Report, and here are my quick takeaways:
— Back in Positive Territory: After 3 years of giving space back, the market finally turned the corner. The positive 816K SF of net absorption shows that tenants are making moves again — some rightsizing, others expanding — but all heading back to the office.
— Sublease Inventory Dropped: Sublease space is now down to 4.5 million SF, a 10% drop from last quarter. That’s a healthy sign. We’re seeing more subleases convert to direct deals, giving landlords more control and tenants better clarity.
— Vacancy Is Still High — But Falling: Direct vacancy is at 19.1%, with sublease space pushing the total closer to 23%. But that’s down from 25% last year. Tenants still have plenty of options…
Our team at The Coppola-Cheney Group is working on over 150 active deals. If you’re trying to figure out what this all means for your office strategy, let’s connect
Click here to view the full report.
Click here to view the full report.
